RYVYL Inc. (NASDAQ: RVYL)

Sector: Technology Industry: Software - Infrastructure CIK: 0001419275
Market Cap 1.49 Mn
P/B -0.46
P/E -0.07
P/S 0.04
ROIC (Qtr) 651.66
Div Yield % 0.00
Rev 1y % (Qtr) -1.62
Total Debt (Qtr) 3.25 Mn
Debt/Equity (Qtr) -1.01

About

RYVYL Inc., known by its stock symbol RVYL, is a financial technology company that specializes in the development, marketing, and sale of blockchain-based payment solutions. The company's primary objective is to create and monetize disruptive blockchain-based applications, which are integrated within a comprehensive suite of financial products capable of supporting a multitude of industries. RYVYL's main business activities revolve around the provision of financial technology solutions, specifically in the area of payment processing. The company...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 17.74M provide 27.89x coverage of short-term debt 636000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 21.95M provides 6.75x coverage of total debt 3.25M, indicating robust asset backing and low credit risk.
  • Retained earnings of (192.52M) represent substantial 59.75x of equity (3.22M), indicating strong internal capital generation.
  • Strong tangible asset base of 21.95M provides 14.96x coverage of intangibles 1.47M, indicating robust asset quality.
  • Strong R&D investment of 1.18M at 0.69x of capex 1.72M shows balanced investment in innovation and infrastructure.

Bear case

  • Operating cash flow of (4.13M) barely covers its investment activities of (76.93M), with a coverage ratio of 0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (76.93M) provide weak support for R&D spending of 1.18M, which is -65.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 17.74M provide limited coverage of acquisition spending of (74.95M), which is -0.24x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (4.13M) shows concerning coverage of stock compensation expenses of 893000, with a -4.62 ratio indicating potential earnings quality issues.
  • Free cash flow of (5.85M) provides weak coverage of capital expenditures of 1.72M, with a -3.40 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.43 2.69
EV to Cash from Ops. EV/CFO 2.45 28.91
EV to Debt EV to Debt -3.12 19.83
EV to EBIT EV/EBIT 0.59 -9.95
EV to EBITDA EV/EBITDA 0.99 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 1.73 26.09
EV to Market Cap EV to Market Cap -6.78 0.36
EV to Revenue EV/Rev -0.29 -9.34
Price to Book Value [P/B] P/B -0.46 3.88
Price to Earnings [P/E] P/E -0.07 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) -7.88 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -218.34 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -80.61 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 64.16 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 45.93 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 64.50 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 60.43 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 76.08 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -122.37 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -11.18 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.51 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.74 1.22
Current Ratio Curr Ratio (Qtr) 0.82 2.59
Debt to Equity Ratio Debt/Equity (Qtr) -1.01 -0.96
Interest Cover Ratio Int Coverage (Qtr) -7.88 -14.20
Times Interest Earned Times Interest Earned (Qtr) -7.88 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -44.90 -548.16
EBIT Margin % EBIT Margin % (Qtr) -48.59 -199.84
EBT Margin % EBT Margin % (Qtr) -54.76 -607.20
Gross Margin % Gross Margin % (Qtr) 42.70 51.88
Net Profit Margin % Net Margin % (Qtr) -56.40 -610.00